Joe owns a coffee house and produces coffee drinks under the production function q = 5KL where q is the number of cups generated per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labour). What is the marginal product of labour?
Joe owns a coffee house and produces coffee drinks under the production function q = 5KL where q is the number of cups generated per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labour). What is the marginal product of labour?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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Joe owns a coffee house and produces coffee drinks under the production function q = 5KL where q is the number of cups generated per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labour). What is the marginal product of labour?
A.
5
B.
5K
C.
5L
D.
5K/L
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